One subunit of Speed Sports Company had the following financial results last month: Requirements 1. Complete the

Question:

One subunit of Speed Sports Company had the following financial results last month:
One subunit of Speed Sports Company had the following financial

Requirements
1. Complete the performance evaluation report for the subunit (round to three decimal places).
2. Based on the data presented, what type of responsibility centre is this subunit?
3. Which items should be investigated if part of management€™s decision criteria is to investigate all variances equal to or exceeding $9,500 and exceeding 16% (both criteria must be met)?
4. Should only unfavourable variances be investigated? Explain.
5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain.
6. Do you think management will place equal weight on each of the $9,500 variances? Explain.
7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance reports a lead or lag indicator? Explain.
8. List one key performance indicator for the other three balanced scorecard perspectives. Indicate which perspective is being addressed by the indicators you list. Are they lead or lag indicators? Explain.

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Managerial Accounting

ISBN: 978-0176223311

1st Canadian Edition

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

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